A monopolistically competitive industry is like a perfectly competitive industry in the sense that:

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Both (b) and (c) are true for monopolistically competitive and perfectly competitive industries. In both cases, there are low entry barriers, allowing new firms to enter and exit the market relatively easily. In the long run, economic profits are driven to zero due to the ease of entry and competition between firms. Additionally, both types of industries may engage in non-price competition, such as advertising, product differentiation, or branding, in order to capture consumer attention and loyalty.

A Monopolistically Competitive Industry Is Like a Perfectly Competitive Industry